Lahontan Gold (TSX.V: LG) (OTCQB: LGCXF) reported positive results from a preliminary economic assessment (PEA) for its Santa Fe Mine gold-silver project in Nevada, outlining a post-tax net present value at a 5% discount rate of $820 million and an internal rate of return of 40.1%. Based on gold prices of $3,600 per ounce and silver prices of $49 per ounce, the assessment projects $3.68 billion in life-of-mine revenue and $1.32 billion in after-tax net cash flow over an 11-year active mine life, followed by one year of residual leaching.
Average annual production is estimated at approximately 91,900 gold-equivalent ounces, with initial capital costs of $172 million and a projected payback period of 3.7 years. At higher spot-price assumptions, the post-tax net present value increases to approximately $1.13 billion. The company said the updated assessment represents a more than fourteenfold increase in post-tax net present value compared with its 2024 PEA. This substantial increase underscores the project's improved economics and could signal a new phase of development for the Santa Fe Mine, which previously produced 359,202 ounces of gold and 702,067 ounces of silver between 1988 and 1995.
Lahontan plans to use the mine plan and production schedule to inform its final Mine Plan of Operations submission to the U.S. Bureau of Land Management and expects to secure federal and state construction permits in 2027. The company also identified potential opportunities for resource expansion through additional exploration and evaluation of historic heap leach pads. The PEA remains preliminary, includes Inferred Mineral Resources and does not establish economic viability or Mineral Reserves. To view the full press release, visit https://ibn.fm/QeKC5.
For investors in the raw materials mining sector, the PEA results highlight the potential of the Walker Lane district in Nevada, a mining-friendly jurisdiction with existing infrastructure. The projected payback period of 3.7 years and robust cash flows could attract further investment in the region. The company's flagship property, the 26.4 km2 Santa Fe Mine project, has a Canadian National Instrument 43-101 compliant Indicated Mineral Resource of 1,539,000 oz Au Eq and an Inferred Mineral Resource of 411,000 oz Au Eq, all pit constrained. Lahontan aims to continue advancing the Santa Fe Mine project towards production, update the PEA, and drill test its satellite West Santa Fe project during 2025. For more information, visit the company's website at www.lahontangoldcorp.com. The latest news and updates relating to LGCXF are available in the company's newsroom at http://ibn.fm/LGCXF.
This news was disseminated by MiningNewsWire, a specialized communications platform focused on the global mining and resources sectors. It is part of the Dynamic Brand Portfolio at IBN, which provides access to wire solutions via InvestorWire and other services. As the gold and silver markets remain volatile, Lahontan's PEA offers a glimpse into the potential of a historically productive mine, with implications for local economies and the broader mining industry. The assessment's reliance on current metal prices and its preliminary nature should be considered by stakeholders.
